Ethereum Consolidates Above $600, A Strengthening Case for Upside

Ethereum has hit the resistance level of $ 600 and tested the zone of $ 625 against the US dollar. ETH price is consolidating over $ 600 and is likely preparing for the next step.

  • Ethereum was above the key resistance level of $ 600 and rising towards $ 625.
  • The price is currently consolidating near the $ 600 support and the 100 hour simple moving average.
  • A large contraction triangle is forming on the hourly chart of ETH / USD (data feed via Kraken) with a resistance near USD 620.
  • The pair could start a fresh spike above $ 620 as long as it is above the 100-hour SMA.

Ethereum Price Resistance Turned Support

There was a steady surge in Ethereum after breaking the $ 600 resistance. The ETH price even surpassed the $ 610 level and was above the 100-hour simple moving average.

It was trading close to the USD 625 resistance before initiating a downward correction. A high was formed near $ 624 and the price corrected below $ 615. There was a break below the 50% fib retracement level of the move up from the low of $ 587 to the high of $ 624.

Ether is currently nearing the USD 600 support zone and trading above the 100-hour simple moving average. A large contraction triangle is also forming on the hourly chart of ETH / USD with resistance near USD 620.

Source: ETHUSD on TradingView.com

The triangle support is close to the Fib retracement level at 61.8% of the move up from the low of $ 587 to $ 624. As long as the price is above the USD 600 support and the 100 hour simple moving average, a new spike could begin.

Initial resistance is near the USD 615 level. The main resistance is near the $ 620 level, above which the ether price is likely to accelerate above $ 625 and $ 630.

Downward pause at ETH?

Unless Ethereum clears the USD 615 resistance and upper trendline of the triangle, it risks breaking down. The first major support is near the $ 600 level and the 100 hour simple moving average.

A downside break below the $ 600 support and 100 hour SMA could trigger a sharp decline. The next big support is near the $ 570 level, where the bulls are likely to take a stand.

Technical indicators

Hourly MACD – – The MACD for ETH / USD is slowly losing momentum in the bearish zone.

Hourly RSI – – The RSI for ETH / USD is currently rising and approaching the 50 level.

Main support tier – $ 600

Main Resistance Level – $ 620